Republic of Mining

Gina Rinehart scores WA royalties win against mining major Rio Tinto (The Australian – October 14, 2015)

October 14, 2015

http://www.theaustralian.com.au/

BILLIONAIRE Gina Rinehart has had a multi-million dollar High Court win against mining giant Rio Tinto.

The High Court of Australia ruled that Rio Tinto subsidiary Mount Bruce Mining (MBM) is liable to pay royalties to Ms Rinehart’s Hancock Prospecting and joint venture partner Wright Prospecting in relation to iron ore mined in the Eastern Range and Channar areas of the Pilbara in Western Australia.

The High Court dismissed an appeal from the NSW Court of Appeal in relation to a tenement sale agreement reached in 1970 between Ms Rinehart’s father Lang Hancock and his business partner Peter Wright about the payment of royalties by MBM.

Rio Tinto temporarily lost control of the tenements and later regained control to mine the rich iron ore region. The sale made Ms Rinehart the richest woman in Australia and one of the richest people in the world.

Zinc turning bull? – by Kip Keen (Mineweb.com – October 13, 2015)

October 14, 2015

http://www.mineweb.com/

We look at the question of how much Glencore’s zinc cuts matter.

HALIFAX, NS – There’s no doubt that Glencore, in planning to axe some 500 000 tonnes zinc output, is throwing it’s weight around in the zinc market. The cut amounts to nearly 4% of world supply from mines. Indeed, zinc is a market where Glencore can, acting alone, make a difference to the big picture by curtailing operations.

But with demand growth for zinc and other metals waning in China somewhat, with a notable downturn in new construction there among other things, you wonder if, or to what degree, Glencore is chasing down a declining market (in growth terms).

With this question in mind, we asked BMO analyst Jessica Fung her view on how much of a difference Glencore’s zinc cuts make to the zinc market. She responds, “Glencore’s cuts do matter.”

To give perspective, she puts the zinc cut in copper terms. “Another way I have been explaining the impact of these cuts is that if this were announced in the copper market, it would be equivalent to 1 million tonnes of mine supply, which would be a very big cut from a copper miner.”

Canada’s prosperity built on network of railways, ports — and pipelines – by Gary Leach (Globe and Mail – October 14, 2015)

October 14, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Gary Leach is president of the Explorers and Producers Association of Canada.

The history of Canada is a story of nation-building across one of the world’s most difficult and challenging landscapes.

Our communities are separated by great distances and a sometimes-hostile natural environment. Our geography has endowed us, as a nation, with great natural resource wealth. But it also presents us with vexing challenges.

The great national transportation and infrastructure projects of the 19th and 20th centuries – our railways, highways, seaways, communications networks and pipelines – linked a string of remote and isolated communities and laid the foundation for one of the world’s most prosperous and respected countries. We were a nation that got things done. But today, much of that visionary infrastructure might never be built.

Ports are our lifelines to the world. Canada’s national prosperity is built on access to global markets, which maximizes the wealth we obtain from developing our abundant resources.

GLOBE EDITORIAL: Providing safe drinking water on reserves is simple. Just do it (Globe and Mail – October 14, 2015)

October 14, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Last January, there were 1,669 Canadian towns under drinking water advisories. By far the most common were advisories to boil tap water for a minute before consuming it.

Thankfully, these advisories are usually lifted quickly, because municipalities are governed by provincial regulations that define clear lines of responsibility and lay out rules on how to respond to problems. It’s rare for DWAs to last more than a few weeks.

On native reserves, however, they can go on for decades. It’s easy to see why.

Drinking water on reserves is a federal jurisdiction. Ottawa provides 80 per cent of the funding; the local councils build and maintain the systems and are responsible for training the operators and doing regular testing.

So far, so good.

A story in charts: are miners at a turning point? – by Naomi Rovnick (Financial Times – October 13, 2015)

October 14, 2015

http://www.ft.com/

An ill wind is blowing across UK mining stocks, which are trading at around a five-year low. Stocks, however, are offering tempting dividend yields and some momentum-driven traders are predicting the cycle is about to turn. Volatile mining stocks have long been popular with individual investors with a more aggressive approach to risk. But is now the time to buy in, or does the sector remain too unpredictable for even the very brave?

The first thing private investors should be aware of is what is happening in China. The fall in mining shares can be blamed on slowing growth in the world’s second-largest economy, which has historically been the major global consumer of most commodities, from copper to cotton.

The China slowdown is not miners’ only problem. For several years until around 2012, the industry invested heavily in new mines, then greatly increased their production of commodities such as the steelmaking material iron ore.

So metals prices have been falling.

GroundUp Op-Ed: Will South Africa’s gold miners get justice? – by Marcus Low (Daily Maverick South Africa – October 12, 2015)

October 14, 2015

http://www.dailymaverick.co.za/

The landmark silicosis class action lawsuit in South Africa has thrown up some similarities between the history of the country’s gold mines and the violent history of the rubber trade in the Congo. Over decades, South Africa’s gold mines systematically exposed their mostly poor and black workers to dangerous levels of silica dust knowing it would kill them.

In King Leopold’s Ghost, the historian Adam Hochschild uncovers the horrors committed in the Belgian Congo in the years before and after 1900. It is a history of slavery, murder and mutilation – anyone who’s seen the pictures of piles of cut-off hands cannot but be horrified by it.

Rather than just focusing on “the horror”, Hochschild zooms in on the courageous individuals who stood up against this cruelty. These are people like George Washington Williams, a black American journalist who travelled to the Congo in the late 1880s, and ED Morel, who dedicated much of his life to exposing the atrocities to the British public and to changing public opinion.

King Leopold’s Ghost recognises and bears witness to the atrocities in the Congo. Atrocities like these are too easily forgotten, too easily reduced to boring facts and figures.

X2 Said to Be Last Remaining Bidder for Rio Australia Mines – by Brett Foley, Dinesh Nair and Thomas Biesheuvel (Bloomberg News – October 12, 2015)

October 14, 2015

http://www.bloomberg.com/

X2 Resources, the private-equity firm founded by former Xstrata Ltd. chief Mick Davis, has emerged as the last remaining bidder for control of two Rio Tinto Group coal mines in Australia, people with knowledge of the matter said.

X2 is progressing in negotiations with Rio as the other interested parties, including Glencore Plc and New Hope Corp., are no longer in talks to buy the assets in New South Wales state’s Hunter Valley region, according to the people. The mine stakes may fetch more than A$3 billion ($2.2 billion), one of the people said, asking not to be identified because the talks are private.

Rio Chief Executive Officer Sam Walsh has sold $4.5 billion of less-profitable assets since January 2013, reducing its coal portfolio amid falling prices in order to focus on larger iron ore and copper operations. Any deal would be the first purchase for Davis’s X2 fund since he raised several billion dollars from investors to pursue mining acquisitions.

New Hope, which agreed last month to buy Rio’s 40 percent stake in the Bengalla coal venture in Australia for $606 million, isn’t pursuing the other mines Rio is selling in the country, according to the people.

Copper King Has Stomach to Keep Producing, Spending in Rout – by Jesse Riseborough and Agnieszka De Sousa (Bloomberg News – October 13, 2015)

October 13, 2015

http://www.bloomberg.com/

For copper bulls betting on more mining companies cutting production like Glencore Plc, the news out of Chile isn’t good.

Codelco, the world’s biggest copper producer, is maintaining output targets and warning investors not to expect any dramatic changes to its record investment plans.

Codelco’s mines probably will remain profitable even as concern over Chinese demand is set to keep prices low in the coming years, Chairman Oscar Landerretche said in an interview Monday in London. While there will be minor revisions, the majority of a $25 billion, five-year investment plan to help replace aging deposits will be rolled out as planned, he said.

“We will have to rationalize, but the projects, we will do,” he said, adding that a review of the state-owned Chilean miner’s investment budget will be completed later this month. “One shouldn’t expect big dramatic changes in the strategic position.”

Nickel prices rebound, boosted by speculation of Glencore output cuts – by James Regan and MElanie Burton (Reuters U.K. – October 13, 2015)

October 13, 2015

http://uk.reuters.com/

SYDNEY/MELBOURNE – Oct 13 Nickel prices have rebounded after dropping to a near seven-year low last week, buoyed by market speculation that heavily indebted miner and trader Glencore Plc could curb output following cuts to its copper and zinc production.

Glencore is the world’s fifth-biggest producer of nickel, with operations in Australia, Canada, Norway, New Caledonia, and Dominican Republic, much of which was acquired in its 2013 takeover of Xstrata.

Glencore, whose shares have been hammered by worries about its debt burden, declined to comment on the speculation.

“In nickel, as in copper and zinc, an output cut by Glencore could have an immense impact,” said Minelife commodities analyst Gavin Wendt.

“It would not only send the right message to Glencore’s investors and bankers, it would be saving the company money and probably lift the nickel price in the process.”

Glencore to sell copper mines in Australia, Chile – by OLIVIA KUMWENDA-MTAMBO AND SONALI PAUL (Reuters U.K. – October 12, 2015)

October 13, 2015

http://uk.reuters.com/article/

LONDON/MELBOURNE – Glencore (GLEN.L) plans to sell copper mines in Australia and Chile as the mining and trading company aims to reduce a debt burden accumulated in an asset buying spree that has shaken confidence in the Swiss-based firm.

Selling assets is one element of a broad plan to cut about a third of Glencore’s $30 billion (19.6 billion pounds) net debt and to regain the trust of investors after its shares tumbled to record lows this year amid weak global commodity prices.

Glencore said it would sell its wholly-owned Cobar copper mine in Australia and Lomas Bayas copper mine in Chile after receiving interest from potential buyers.

“This will allow potential buyers to bid to purchase either one or both of the mines and may or may not result in a sale,” Glencore said in a statement on Monday.

A London-based analyst said the Cobar and Lomas Bayas mines together could fetch less than $300 million as they are very small.

Cree community looks on warily as De Beers scours North for diamonds – by Tanya Talaga (Toronto Star – October 10, 2015)

November 3, 2015October 13, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

With De Beers’ Victor Mine near Attawapiskat approaching the end of its lifespan, the company is looking farther north — causing a stir in Peawanuck, where residents are concerned about protecting their traditional lands.

WEENUSK FIRST NATION, ONT.—From a height of 300 metres, Jennifer Wabano looks out the window of the eight-seat float plane as it approaches the Winisk River watershed.

Wabano, a mother of 10, watches the mesmerizing landscape of the Hudson Bay Lowlands. String bogs resembling giant tiger stripes splashed across the land stretch for miles before giving way to fields of pristine, lime-green peatland that is thousands of years old. Scattered throughout the peat are hundreds of freshwater lakes of all shapes and sizes that were formed a millennium ago by retreating glaciers.

The lowlands are one of the world’s last untouched carbon storehouses, trapping the gases that warm the globe at an increasingly alarming rate. Bald eagles nest along the banks of the Winisk River. In summer, polar bears wander through town in search of food. Brook trout are caught in the mud flats of Hudson Bay. Migratory caribou and moose are staples in this community that continues to depend on the land for its existence.

New bids likely after U.S. Steel Canada splits from parent company – by Greg Keenan (Globe and Mail – October 12, 2015)

October 13, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The divorce between United States Steel Corp. and U.S. Steel Canada Inc. will likely lead to new bids for the Canadian unit, sources familiar with the restructuring say.

U.S. Steel Canada has been effectively cut loose from its parent company under a transition agreement announced last week that includes a promise that the Pittsburgh-based U.S. Steel will not be a bidder if there is a second effort to sell the Canadian unit.

Potential bidders were put off during the first sales effort by a process they believed was skewed in favour of U.S. Steel, sources said. “There are people out there who want to rebid,” said one source involved in discussions about the future of U.S. Steel Canada. “Now, we have a sensible sales and restructuring process.”

The promise that U.S. Steel will not bid for the company means other purchasers don’t have to worry about a potential claim of more than $2-billion that U.S. Steel applied against the Canadian company and had been planning to use as credit in its own bid.

Action against Vale rare: Mining watchdog – by Carol Mulligan (Sudbury Star – October 10, 2015)

October 13, 2015

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

The enforcement action Environment Canada took Thursday against Vale Canada Ltd. is very rare in Canada, says a spokeswoman for a mining watchdog group.

Environment Canada enforcement officers, with support from Royal Canadian Mounted Police, executed a search warrant at Vale’s engineering building Thursday. The warrant was part of an active Environment Canada investigation that began in November 2012, said Nathalie Huneault of Environment Canada.

The investigation relates to alleged violations of the general prohibition in the Fisheries Act, which prohibits the deposit of substances that are deleterious to fish into water frequented by fish, she said. Huneault said Environment Canada couldn’t comment further because the matter is under investigation.

Vale spokeswoman Angie Robson said Environment Canada was on site Thursday “collecting information related to alleged infractions under the Fisheries Act that allegedly occurred in 2012. Vale is co-operating fully in providing the information required.”

Old Mo’s. New Tricks. Canadian Mines have fun, doin’ good as a team in Movember – by Movember Staff

October 15, 2015October 9, 2015

Mo Bro Randy Whitcome, BHP Billiton - Specialist Compliance Legal, Potash. — Mo Bro Randy Whitcome, BHP Billiton – Specialist Compliance Legal, Potash.

It’s the time of year when men are getting ready to grow the most epic moustache.

Movember is upon us, the month formerly known as November, which is responsible for the sprouting of moustaches on thousands of men’s faces around the world, all in the name of men’s health. During Movember Canadians band together in teams within their industry to create a network challenge at Movember.com.

These networks create a fun and competitive environment that showcases the collective achievement of the industry while raising awareness and funds for men’s health, particularly prostate cancer, testicular cancer, poor mental health and physical inactivity. To date, $175 million has been raised in Canada.

In 2014, BHP Billiton Canada, had 39 members on their Movember team called Average Joes with Awesome Mo’s. Lead by Mo Bro Randy Whitcome, the team has raised over $17,000 and had fun doin’ good with fundraising activities that included direct donations from family and friends and fun challenges.

“My most memorable moment during Movember was hearing some tough Mo Bro’s sharing very personal stories with their co-workers”, said Randy Whitcome, Team Captain, Average Mo’s with Awesome Mo’s. “It made me proud to be part of the team and to have our company rally behind us and the cause.”

This year, the Movember Foundation is adding another way to champion men’s health with the addition of MOVE – a 30-day fitness challenge to promote physical activity. For Mo Sistas, MOVE is a way to do something tangible in the name of men’s health, and for Mo Bros it’s a new challenge. Grow your Mo, MOVE, or take things to the next level and do both.

Celebration of Peru’s Economic Boom Comes Late (Associated Press/New York Times – October 9, 2015)

October 9, 2015

http://www.nytimes.com/

LIMA, Peru — The world’s top finance officials lavished praise on Peru’s “economic miracle” this week, lauding it for cutting poverty by half during a decade-long bonanza of record-high prices for gold, copper and other metals it mines.

In a gleaming $160 million convention center built for the meeting of the World Bank and International Monetary Fund, policymakers called Peru a prize pupil of their prescriptions for financial stability.

World Bank President Jim Yong Kim deemed it a “growth star.” IMF chief Christine Lagarde likened Peru’s economic growth recipe to its world-famous cuisine. Unfortunately, the praise may have come too late.

Plunging prices for minerals, Peru’s economic backbone, have cut annual growth to less than half the 6.3 percent that made it the envy of Latin America from 2002-2012, a period when per capita income doubled to more than $6,600.

Several mammoth mining projects have been stalled by violent protests and declining mining revenues threaten to force cuts in the social spending.